Accounting Firm proudly serving New Jersey and New York clients since 2007

Blogs and Thoughts

Hello Folks! Welcome to the official bloag of Gary Mehta, CPA, EA. As  NJ Accountants and Tax Consultants, we understand that the tax code is ever-changing. While striving to stay updated with current tax laws, we come across hot topics in our profession.  This blog will discuss some of these topics and hope to shed some light on them.  Here are some interesting and informative articles that we've written. Most of these are based on FAQs that we come across in the accounting community. Enjoy!

What can an Accountant do for you?

Congratulations, you’ve made it. You’re on your own and run a small company. You have been keeping up with the bank account management, as well as invoicing so far. However, nowadays you are expanding - sales are picking up, and you realize you have to spend more time on the not-so-fun aspect of the business, the back end. You envisioned yourself doing the sales, the client meetings, and even research and development, but never the back end analytics and reconciliations. As you’re sales grow, it seems you’re spending more time doing work than getting work. What a bummer.   


In another scenario,  have you been by now knee-deep in bills as well as a growing account receivable that you can’t seem to collect on? Already drowning in bills, payroll and taxes are right around the corner, and it seems you’re running out of options. 


Or perhaps better still, are you just starting the small business of yours and wish to start on the right foot?


In all these scenarios, there is no better time than today to employ an accountant.

What's an Accountant?

Before you can get going, you should have an understanding of what an accountant is and what they can provide.


An accountant is a pro that may manage the bookkeeping and prepares financial reports like profit-and-loss statements, balance sheets, and other things. They can perform audits company financial statements and processes that regulate how financial reporting is managed (internal controls), prepare reports for tax and regulatory purposes, as well as deal with all of the financial info that is part of running the company of yours. In other words, they're the finance nerds you need! 

Just what does An Accountant Do?

  

So just what does that mean for you as well as the business of yours? Just how can an accountant's way with numbers & superhuman calculating abilities make the life of yours easier? We’ve compiled a list here itemizing only a handful of cases of exactly how utilizing an accountant can help your company grow:

  

  • Business taxes might be perplexing. Get the help you would like.
  • An accountant can counsel on the business structure. Is the small enterprise of yours set up as being a sole proprietorship or maybe an LLC? What is the difference and what exactly are the advantages of one with the other? An accountant can point the ship of yours on the proper path and tackle the paperwork to help you there.
  • An accountant can issue invoices. The business of yours needs to make cash somehow; therefore, you have to be certain you are charging - and also collecting out of - the clients of yours in a professional and timely manner. An accountant can create and send invoices to the clients of yours, and chase them down to assure timely payment.
  • An accountant can record sales. For a business to achieve success, you have to learn what you are selling, the costs of promoting, and how much is your profit. An accountant can keep tabs on small product sales as well as their sales patterns. Advanced sales reporting means you realize what your biggest sellers are, which items to phasing out, and how to manage inventory balances. An accountant also answers a lot of various operations and structure-related issues, which will help your business grow.
  • An accountant can also control the payment of invoices from suppliers. The larger the business of yours becomes, the more streamlined this process will have to be. The accountant can track these expenses and incorporate them into the budget, helping you maximize your profit. 
  • An accountant can prepare payroll and manage its cost accounting. Just how many hours did the sales manager work, and what was she paid? What quantity of sales did she generate per working hour? The accountant can monitor as well as compute her pay and her production, and let you know just how much you have to withhold for quarterly payroll taxes. An accountant can monitor accounts receivable. You understand invoices sent to all of the customers, but how many settled and which invoices are outstanding? Why do some vendors pay faster than others? How can we expedite payment? And most importantly, How much cash do you have available for your expenses (“cash burn”).
  • An accountant can keep you updated with changes as well as tax laws. Taxes are challenging, and with the 2018 Tax Bill, they might get much trickier for small businesses. An accountant can help keep you in compliance with tax laws by calculating payroll taxes for the employees of yours or even keeping up with sales tax changes.
  • Get important weekly, monthly, or yearly reports on the economic well being of the company. Answer important questions like Just how healthy is the business of yours? And How much cash should you keep on hand? An accountant is going to create all of the reports you need to make the right business decisions. 


When Must you Hire an Accountant?

  It is wise to have professional guidance from an accountant throughout the life of the small business. Whether you are only in the planning stages or quickly growing with many employees, the right guidance is valuable at any stage of business.


Small-business owners are used to doing everything and have difficulty delegating duties to others. This happens because of a lack of funds or ownership is very invested and refuses to get a professional perspective. We know that this business is your baby, and accountants want to make sure it’s nurtured properly. You’ve started the company from scratch. Don’t let a bad experience with a  bookkeeper deter you from getting the right advice. These are many reasons you want a reliable, experienced, certified professional.

Different Types of Accountants

Accountant duties vary by occupation. Below are outlines of what different accountants do.  

  

  • Bookkeeper - Bookkeepers aren't all accountants, but accountants may be bookkeepers. Bookkeepers handle a range of activities for small business, from bill payments to weekly accounts reconciliations, they do it all. While bookkeepers are good at managing a lot of fiscal responsibilities, they do not carry licenses that allow them to represent one to the IRS or even prepare taxes.
  • Certified Public Accountant (CPA) - The state licenses CPAs after passing certain examinations and attaining the necessary experience and education. They are permitted to prepare as well as sign tax returns for companies and individuals ( in certain instances) and could represent taxpayers before the IRS for audits. They can also give assurances of the accuracy of financial statements and perform audits on processes behind how financial reporting is done within a company. They can also attest to the third party about verification of income for mortgage, charity care, and banks for loan covenants.  
  • Enrolled Agent - Enrolled agents must pass an extensive examination that covers individual and business tax laws. They are permitted to prepare the tax returns of yours. However, they cannot sign them without proper consent. They should also meet continuing education requirements to keep the licenses of theirs, and they can represent you before the IRS in case you are audited.
  • Tax Accountants & Tax Advisors – These accountants focus on the same thing. Yep, You’ve got it. Taxes. They know how to save taxes. They also advise on the impact of a transaction from the tax perspective. They are usually licensed as CPAs or Lawyers that give them certain credibility to advise on such matters.  
  • Tax Preparers & Tax Consultants – The accountants focus on the tax preparation process only. They advise clients on tax rules and regulations and prepare their returns. They usually aren’t licensed and are highly dependent on the accounting software to guide them on how to prepare the returns. 
  • Tax Attorney – They basically do everything a CPA can; however, they cannot conduct financial audits but can represent clients in civil or criminal offenses. They tend to be more knowledgeable from a legal and procedural perspective. However, when it comes to IRS or NJ tax representation, both have the same representational capacity.  
  • Small Business Accountant – This type of accountant focuses on the needs of a small business. They handle everything from forming the business, self-employment returns, and reporting for business closings. They also assist in quarterly filings for payroll tax, excise taxes, and sales tax. Since this is an industry term, they may or may not be licensed.  

Getting Help from the best accounting firm in Jersey City and Bergen County

Always striving to be the best accountant in New Jersey & New York Metro area, Gary Mehta constantly works on improving his art. Whether it’s learning about new industries or keeping updated with new and tricky tax regulations, Gary Mehta prides on getting his clients the best tax advice. Call us now to see how we can help.  

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Gary Mehta, CPA, EA

101 Hudson Street, 21st Fl, Jersey City, New Jersey 07302, United States

(201) 252-6703